Curaçao publishes Pillar Two IIR ordinance applying from 2025

The ordinance, dated 13 October and published as P.B.2026 no.231, implements an income inclusion rule rather than all Pillar Two charging rules. Article 1.1 imposes the IIR under Chapter 4; the domestic top-up tax and undertaxed profits rule chapters are reserved. Definitions or references to those taxes should not be mistaken for operative charging provisions.^[1]

Article 2.1 applies the €750 million consolidated-revenue threshold in at least two of the four preceding financial years, with detailed rules for shorter reporting histories and non-standard years. Article 2.2 excludes specified public, non-profit, pension and investment entities and certain conditionally qualifying entities they hold. The precise parent roles and upper-chain IIR exceptions in Article 4.1 then determine liability; a Curaçao entity’s presence alone is insufficient.^[1]

The legislation separates the tax return and payment from the GloBE information return. Article 11.1 ordinarily allows 17 months after year-end for the tax return and payment; Article 13.1(6) sets 15 months for the information return and related notification. Foreign filing can remove local information-return filing only where the specified filer and qualifying competent-authority-agreement conditions are met. The local notification remains required.^[1]

Article 14.3 provides transition periods of 20 months for the tax return and payment and 18 months for the information return and notification. Its prior-foreign-filing exception can disapply that treatment. Transition depends on the statutory definition, not simply the label ‘2025’. Paragraph 3 contains an apparent cross-reference defect, referring to a seventh paragraph of Article 13.1 although that article has six; groups should confirm implementation instructions rather than silently rewriting the text.^[1]

Article 16 also inserts joint and several local-group collection liability into the Invorderingsverordening 1954, adds the new tax to the general tax ordinance, and changes thresholds in Articles 43(5) and 46(2) of the profit-tax ordinance to €750 million. Groups should establish their actual parent chain, revenue history, exclusions, reporting year and foreign-filing arrangements before calculating obligations. Publication does not itself prove an activated exchange relationship or OECD qualification.^[1]